The Board of Directors of Pinecrest has approved a 2013 capital budget
of $136MM, focused on drilling, completion, equipping, tie-in and
waterflooding the Slave Point light oil resource play in the Company's
greater Red Earth core area.

The capital and operating assumptions used in the $136 million budget
are as follows:

The budget is to be financed with a combination of cash flow and the
Company's expanded credit facility, resulting in projected 2013 year
end net debt of $136 million and a debt to forward cash flow ratio of
approximately 1.0.

Waterfloods

The positive results of Pinecrest's joint waterflood and the historical
waterfloods in the great Red Earth area provided the Company with
sufficient confirmatory data to proceed with several waterflood
schemes. In an effort to accelerate the Company's ability to implement
fully developed horizontal well waterflood schemes in 2013, Pinecrest
elected to drill 12 gross (12.0 net) infill horizontal wells in the
third and fourth quarters of 2012. These wells were drilled on three
sections of land at eight horizontal wells per section with 1,400m
laterals.

Evi-Project #2

Initial results from the Company's first 100% operated waterflood scheme
("Evi-Project #2") have been very encouraging and in accordance with
Company expectations. Uninterrupted water injection commenced on
December 20, 2012 and early results have seen oil production from the
offset wells increase from 95 barrels per day to 280 barrels per day.

Pinecrest has received ERCB approval for four additional 100% operated
waterfloods (Loon-Project #1, Red Earth-Project #1, Evi-Project #3,
Otter-Project #1). Loon-Project#1 is scheduled for injection
mid-February 2013, and the other three through Q2 and Q3 2013. An
additional two schemes have been applied for with approvals anticipated
to be obtained within the next four to five weeks after which all of
these projects are scheduled to be phased in throughout the second and
third quarters of 2013. The locations of the seven waterflood schemes
are dispersed throughout the Greater Red Earth area, encompassing the
Evi, Otter, Loon and Red Earth fields. All of the proposed waterflood
schemes will utilize existing wells and similar capital costs resulting
in the same or better capital efficiencies as the initial Evi Project
#1 waterflood.

Credit Facility

Pinecrest has received an increase to its credit facility from its
Canadian chartered bank. With the recent drilling success and
corresponding increase in production, the facility has been increased
to $155 million from the previous $125 million. This increase reflects
the nature of the Company's high quality, long-life Slave Point light
oil assets and its extensive opportunity base.

Hedging

Cash flow management is an integral part of the Company's overall
business strategy. The risk exposure inherent in fluctuations in the
price of crude oil and natural gas, the US/Cdn dollar exchange rate and
interest rates are monitored by the Company's management and its Board
of Directors. A hedging policy has been established to mitigate these
risks. At present, the Company has the following hedges in place:

Duration

Type

Quantity (bbls/d)

Price/bbl (Cdn$)

Calendar 2013
Feb.- Dec. 2013
Feb.- Dec. 2013

Fixed Price Cdn WTI
Fixed Price Edm Light
Fixed Price Edm Light

750
500
500

$90.00$85.75$84.00

Looking forward, the Company will continue to monitor prices and
strategically hedge up to 50 percent of its volumes (after royalties)
at prices above long term commodity and budget levels.

Management Change

Effective February 6, 2013, Bill Turko, V.P. Engineering has stepped
down for personal reasons. Pinecrest would like to thank Mr. Turko for
his many contributions to Pinecrest since inception.

Effective immediately, Darrin Drall has been appointed to the position
of V.P. Engineering. Mr. Drall comes to Pinecrest with 30 years of
experience with 12 years in senior management positions in junior and
intermediate oil and gas companies. Mr. Drall will be a strong
addition to the Pinecrest management team.

Advisory

The information in this press release contains certain forward-looking
statements. These statements relate to future events or our future
performance. All statements other than statements of historical fact
may be forward-looking statements. Forward-looking statements are
often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may", "will",
"project", "predict", "potential", "targeting", "intend", "could",
"might", "should", "believe", "would" and similar expressions. In
particular, forward looking statements in this press release includes,
but is not limited to: Pinecrest's capital program and 2013 business
objectives, Pinecrest's 2013 budget, oil recovery rates, royalty rates,
operating costs, cash flows, the effects of waterfloods on recovery
factors, decline rates and type curves for wells, production rates,
exit rates for production and bank debt, downspacing opportunities, the
quantity of reserves, and projections of market prices and costs. These
statements involve substantial known and unknown risks and
uncertainties, certain of which are beyond Pinecrest's control,
including: the impact of general economic conditions; industry
conditions; changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are
interpreted and enforced; fluctuations in commodity prices and foreign
exchange and interest rates; stock market volatility and market
valuations; volatility in market prices for oil and natural gas;
liabilities inherent in oil and natural gas operations; uncertainties
associated with estimating oil and natural gas reserves; competition
for, among other things, capital, acquisitions, of reserves,
undeveloped lands and skilled personnel; incorrect assessments of the
value of acquisitions; changes in income tax laws or changes in tax
laws and incentive programs relating to the oil and gas industry;
geological, technical, drilling and processing problems and other
difficulties in producing petroleum reserves. Pinecrest's actual
results, performance or achievement could differ materially from those
expressed in, or implied by, such forward-looking statements and,
accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur
or, if any of them do, what benefits that Pinecrest will derive from
them. Except as required by law, Pinecrest undertakes no obligation to
publicly update or revise any forward-looking statements.

Statements relating to "reserves" or "resources" are deemed to be
forward-looking statements, as they involve the implied assessment,
based on certain estimates and assumptions, that the resources or
reserves described can be profitably produced in the future.

Any references in this news release to initial production (IP) rates are
useful in confirming the presence of hydrocarbons, however, such rates
are not determinative of the rates at which such wells will continue
production and decline thereafter. While encouraging, readers are
cautioned not to place reliance on such rates in calculating the
aggregate production for the Company.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this news
release.